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Pensions Reform

Dáil Éireann Debate, Tuesday - 17 May 2022

Tuesday, 17 May 2022

Ceisteanna (71)

Claire Kerrane

Ceist:

71. Deputy Claire Kerrane asked the Minister for Social Protection when she will publish her response to the report of the Commission on Pensions; and if she will make a statement on the matter. [24490/22]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

The question is to ask the Minister when she will publish her response to the report by the Commission on Pensions, which published its report last November and her response was due by the end of March. She might please advise when the response will be published.

The pensions commission's report was published on 7 October 2021. It contained almost 250 pages of analysis, consideration and recommendations. The report established that the current State pension system is not sustainable into the future, and it set out a recommended approach for the Government. In the interests both of older people and future generations of older people - the young people of today - I assure the Deputy that the Government is considering the comprehensive and far-reaching recommendations in the commission's report very carefully and holistically. My officials are examining each of the recommendations and consulting across the Government through the Cabinet committee system. The views of the Joint Committee on Social Protection, Community and Rural Development and the Islands and the Commission on Taxation and Welfare are also being considered as part of these deliberations.

Following detailed consideration of all these inputs, and taking on board the views of my ministerial colleagues, I intend bringing a recommended response and implementation plan to the Government in the coming weeks. I accept that this is somewhat later than planned, but I am sure that the Deputy will understand that the issues raised, and views expressed by the Oireachtas joint committee and others, require careful consideration. In addition, as she will also appreciate, the Government and my Department have been centrally involved in the response to the crisis in Ukraine and other important matters in recent weeks.

The State pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. The Government is committed to ensuring that this remains the case for current pensioners, those nearing pension age and today's young workers, including those who are only starting their careers. I hope this clarifies the matter.

I love the term "in the coming weeks" because it really narrows it down. In fairness, I appreciate the work that was done. I understand that it is a massive report and the area of pensions is hugely complex with many different aspects to it. As the Minister outlined, the report is more than 250 pages long. However, it has been published for almost eight months and we need a response from the Government. People need to know if there are changes coming, and what they are, so that they can plan for their retirement and, most important, when they will be able to access their State pension.

I appreciate that the Minister mentioned the report compiled by the Oireachtas joint committee. That report sought flexibility, which I hope we will see in the Government's response. It should not be a one-size-fits-all approach and that everyone should get their pension at a certain age. We need to have flexibility built into the system given the range of sectors and workers. One size does not fit all for those workers.

In fairness, it has been a busy few months and the Department has been dealing with the situation in Ukraine. We issued 32,000 PPS numbers in recent weeks, put income supports in place for the Ukrainians coming here, and we have worked with them to help them get into employment. Some 2,500 are already working. Today, the Department will administer the new €400 recognition payment. I am working with the Minister for Children, Equality, Disability, Integration and Youth, Deputy O'Gorman, on that.

We have also been responding to other issues such as the cost of living. We have paid the lump sum of €125 and also a lump sum of €100. It has been a busy few weeks, but the pensions work is ongoing and discussions are continuing. In fact, it was discussed at the Cabinet committee again this week. I will be working with my colleagues to bring forward a response to the pensions commission's recommendations as soon as I can. It is fair to say that there are no easy decisions here. Whatever we decide will have far-reaching consequences for many people.

I recognise the work of the Department on the refugees and the level of support they have needed, both in regard to PPS numbers and emergency income supports. I am sure the staff have worked long hours in that regard, which must be acknowledged.

I wish to mention one cohort in particular in regard to pensions, namely, family carers. For a long time they have been promised a solution in respect of the State pension. It is a real shame that in this day and age we have family carers who have given years of support to a loved one at home, who will retire in some instances on a reduced State pension. They deserve nothing less than a full State pension. Many of them are working and caring 24-7 in their homes and they need a solution to the issue once and for all.

I know the commission made a number of recommendations, which I presume are being looked at, but we really need to see moves in this direction ahead of the budget because every month this is not addressed family carers are retiring on a reduced State pension and it is not good enough for them.

There is a recommendation in the pensions commission's report on family carers and we will take that into consideration in totality with the other recommendations in the report. I am confident that the Government will agree a response to the commission's report. We will do so in order that people in their 20s, 30s, 40s and 50s can retire in the knowledge that there will be a State pension for them when they do so. In the past, people retired and claimed the pension for ten or 12 years, but now it is probably closer to 30 years. The reality is that people are living a lot longer, which is a good thing, but it is does present its own challenges. If we do not make the system more sustainable now, the young people of today, who are in their 20s and 30s, may not get a State pension. We must look down the road. It is not a challenge that is unique to this country. Governments all over the world are dealing with this issue. It will be addressed. I am consulting with my Cabinet colleagues, and I will bring a recommendation to the Government.

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